Churn recognition

This article provides information on the churn recognition setting available in ChartMogul.

To adjust the setting, go to Settings & Data > Data Settings and select an option from the Record churn in your reports drop-down. Click SAVE CHANGES to apply your selection.

Learn more about data settings.

ChartMogul offers three churn recognition options:

• When a subscription is marked as canceled in the billing system — ChartMogul recognizes churn at the time the subscription is canceled or expires in your billing system.
• At the end of the final subscription service period — ChartMogul recognizes churn at the end of the billing period of the last paid or open invoice, even if the subscription is canceled immediately in your billing system. This is often considered good practice for MRR reporting.
• As soon as a customer schedules cancellation — If you select this option and aren’t using Recurly, Stripe or Chargebee, ChartMogul will recognize cancellations as churn when the subscription ends in your billing system. This option gives you a real-time view of your forward-looking MRR and is closer to the concept of Committed Monthly Recurring Revenue (CMRR).

Additional notes

Limitations with Google Play and App Store Connect

The churn recognition setting works the same for all billing system integrations, except as noted here:

1. Google Play — When importing using the Daily Sales Report, ChartMogul recognizes subscription cancellations at the end of their billing period.
2. App Store Connect — Similar to Google Play, the App Store reports don’t provide cancellation dates. Because of this, we report cancellations at the end of the service period. However, cancellations resulting from refunded subscriptions follow the churn settings.

Due to limitations with these billing systems, ChartMogul recognizes cancellations as churn at the end of the service period.

Churn recognition

For all sources (except Stripe, Recurly and Braintree) that have churn recognition set to At the end of the final subscription service period, churn in a given month may be different than what you expect.

In ChartMogul, a subscription’s cancellation date and its service period start date must be different. As such, ChartMogul subtracts one second from the cancellation date.

For example, a subscription starts on January 1 and has a renewal on February 1. In January, the customer cancels the subscription. ChartMogul calculates January 31, 23:59:59 as the cancellation date (subtracting one second from February 1, 00:00:00) and recognizes the churn in January (not February).

Churn at click and future-dated cancellations

For Stripe and Chargebee, you can schedule cancellations to take effect after the current service period ends. If your churn recognition setting is set to recognize churn As soon as a customer schedules cancellation, this will result in a churn/reactivation MRR movement and cause your subscription to be marked as past due. This is a known limitation and can be resolved by manually canceling the subscription.